Earnings Archives - Financial Level https://financiallevel.com/category/earnings/ Your Best Financial And Money Saving Tips Sat, 01 Mar 2025 20:17:23 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 Teladoc shares tumble on wider-than-expected loss, disappointing revenue guidance https://financiallevel.com/2025/03/01/teladoc-shares-tumble-on-wider-than-expected-loss-disappointing-revenue-guidance/ https://financiallevel.com/2025/03/01/teladoc-shares-tumble-on-wider-than-expected-loss-disappointing-revenue-guidance/#respond Sat, 01 Mar 2025 20:17:23 +0000 https://financiallevel.com/2025/03/01/teladoc-shares-tumble-on-wider-than-expected-loss-disappointing-revenue-guidance/ In this article TDOC Follow your favorite stocksCREATE FREE ACCOUNT Teladoc Health Inc. signage on the floor of the New York Stock Exchange on Dec. 31, 2024. Michael Nagle | Bloomberg | Getty Images Teladoc Health shares fell in extended trading on Wednesday after the company reported a wider loss than analysts expected and issued

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Teladoc Health Inc. signage on the floor of the New York Stock Exchange on Dec. 31, 2024.
Michael Nagle | Bloomberg | Getty Images

Teladoc Health shares fell in extended trading on Wednesday after the company reported a wider loss than analysts expected and issued disappointing quarterly guidance.

Here’s how the company did, compared to analysts’ consensus estimates from LSEG:

  • Loss per share: 28 cents vs. 24 cents expected
  • Revenue: $640.5 million vs. $639.6 million expected

Revenue at the telehealth company decreased 3% in the fourth quarter from $660.5 million during the same period last year, according to a release. Teladoc’s net loss widened to $48.4 million, or 28 cents per share, from a loss of $28.9 million, or 17 cents per share, a year ago.

Teladoc is in the middle of a deep slump, with its stock price dropping in each of the past four years due to hefty competition in remote health, challenges at mental health division BetterHelp and high operating costs.

When Teladoc acquired digital health company Livongo in 2020, the companies had a combined enterprise value of $37 billion. Teladoc’s market cap was around $1.9 billion as of market close on Wednesday.

“As we look forward in 2025, execution will continue to be a top priority as we advance efforts to unlock growth opportunities and position the company for long term success,” Teladoc CEO Chuck Divita said in the statement. “We will also remain focused on our cost structure, building on the significant improvements achieved in 2024 over the prior year.”  

Teladoc reported adjusted earnings of $74.8 million in its fourth quarter, a 35% decrease from a year ago. Adjusted earnings for the company’s Integrated Care segment declined 5% to $53.2 million, and BetterHelp saw adjusted earnings drop 63% to $21.7 million.

For the first quarter, Teladoc said it expects revenue of between $608 million and $629 million, while analysts were expecting $632.9 million. The company said adjusted earnings will be between $47 million and $59 million for the period.

Earlier this month, Teladoc announced it will acquire preventative care company Catapult Health in an all-cash deal for $65 million. Teladoc said its outlook includes the anticipated contribution from the deal but not the effect of potential impairments or purchase accounting. Teladoc said the acquisition should close at the end of the month.

Teladoc will host its quarterly call with investors at 4:30 p.m. ET.

— CNBC’s Bertha Coombs contributed to this report.

WATCH: Cramer weighs in on Teladoc

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]]> https://financiallevel.com/2025/03/01/teladoc-shares-tumble-on-wider-than-expected-loss-disappointing-revenue-guidance/feed/ 0 Nvidia sales grow 78% on AI demand, company gives strong guidance https://financiallevel.com/2025/03/01/nvidia-sales-grow-78-on-ai-demand-company-gives-strong-guidance/ https://financiallevel.com/2025/03/01/nvidia-sales-grow-78-on-ai-demand-company-gives-strong-guidance/#respond Sat, 01 Mar 2025 12:06:37 +0000 https://financiallevel.com/2025/03/01/nvidia-sales-grow-78-on-ai-demand-company-gives-strong-guidance/ In this article NVDA Follow your favorite stocksCREATE FREE ACCOUNT Nvidia CEO Jensen Huang presents the Nvidia Blackwell platform at an event ahead of the Computex forum, in Taipei, Taiwan, on June 2, 2024. Ann Wang | Reuters Nvidia reported fiscal fourth-quarter earnings after the bell on Wednesday that beat Wall Street expectations. The company also provided

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Nvidia CEO Jensen Huang presents the Nvidia Blackwell platform at an event ahead of the Computex forum, in Taipei, Taiwan, on June 2, 2024.
Ann Wang | Reuters

Nvidia reported fiscal fourth-quarter earnings after the bell on Wednesday that beat Wall Street expectations. The company also provided strong guidance for the current quarter.

The company’s report and guidance signals that the chipmaker is confident it will be able to continue its historic run of growth driven by artificial intelligence well into 2025. Shares were flat in extended trading.

Here’s how the company did, compared with estimates from analysts polled by LSEG:

  • Revenue: $39.33 billion vs. $38.05 billion estimated
  • Earnings per share: 89 cents adjusted vs. 84 cents estimated

Nvidia said it expected about $43 billion in first-quarter revenue, plus or minus 2%, versus $41.78 billion expected per LSEG estimates. The first-quarter forecast implies year-to-year growth of about 65% from a year earlier, a slowdown from 262% annual growth in the same period a year prior.

Chief Financial Officer Colette Kress said the company expects “a significant ramp” of sales of Blackwell, its next-generation AI chip, in the first quarter.

Net income during the quarter rose to $22.09 billion, or 89 cents per diluted share, versus $12.29 billion, or 49 cents per share, in the year-ago period.

Nvidia reported a 73% gross margin in the quarter, which was down three points on an annual basis. The company said the decline in gross margin was due to newer data center products that were more complicated and expensive.

Revenue continues to surge at Nvidia as the company rides the AI boom with its data center graphics processing units, or GPUs, which comprise the vast majority of the market for AI accelerators. Nvidia’s revenue in the quarter rose 78% from $35.1 billion, and full fiscal-year revenue for Nvidia rose 114% to $130.5 billion.

However, Nvidia’s growth is slowing as the company becomes larger. During the fourth-quarter of fiscal 2024, Nvidia sales more than tripled.

Much of the focus this calendar year is on how quickly the company can ship its next-generation AI processors, called Blackwell.

Nvidia said it had $11 billion in Blackwell revenue during the fourth quarter. Nvidia CEO Jensen Huang said demand for Blackwell is “amazing” in a statement, and Kress called it “the fastest product ramp in our company’s history.”

“Blackwell sales were led by large cloud service providers which represented approximately 50% of our Data Center revenue,” Kress said in a statement.

Blackwell sales, as well as sales of the previous generation Hopper AI chips, are reported in the company’s data center business. That unit now represents 91% of the company’s total sales, up from 83% a year ago and 60% in the same period of 2023. In total, data center revenue has increased about tenfold over the past two years.

Nvidia said it had $35.6 billion in data center revenue in the fourth quarter, which was up 93% on an annual basis. That also surpassed StreetAccount expectations of $33.65 billion.

Nvidia officials told investors that while its chips were previously used to develop, or train, artificial intelligence, its new chips such as Blackwell would be used to deliver AI software, a process often called inference.

Kress also addressed investor concerns that efficient models such as DeepSeek’s R1 may limit the need for additional Nvidia chips. New ways of running AI models that ask the AI to generate additional information to “think” through responses could require as much as 100 times the amount of Nvidia chips, she said.

“Long-thinking, reasoning AI can require 100 times more compute per task compared to one shot inferences,” Kress said.

“The vast majority of our compute today is actually inference,” Huang told investors. He said next-generation AI algorithms could even need millions of times the current amount of computing capacity.

Huang also addressed questions about whether Nvidia’s business could be threatened by custom chips being developed by technology companies such as Amazon, Microsoft and Google.

“Just because the chip is designed doesn’t mean it gets deployed,” Huang said.

The company’s data center business this quarter also included $3 billion in sales for the company’s networking parts, which are used to connect hundreds of thousands of GPUs together. However, while Nvidia had signaled that networking was a growth opportunity for the company, networking sales were down 9% from a year ago.

The company’s gaming business, which includes graphics processors for playing 3D games, reported $2.5 billion in sales versus StreetAccount expectations of $3.04 billion. Nvidia’s graphics sales actually declined 11% on an annual basis. The company announced new graphics cards for consumers during the quarter that share the same Blackwell architecture as the company’s AI chips.

One of the company’s growth categories is its business selling chips for cars and robots. Nvidia said on Wednesday that it had $570 million in automotive sales during the quarter, which is a small fraction of the company’s AI business, but which represents a 103% rise on a year-over-year basis.

Nvidia said it spent $33.7 billion on share repurchases in its fiscal 2025.

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]]> https://financiallevel.com/2025/03/01/nvidia-sales-grow-78-on-ai-demand-company-gives-strong-guidance/feed/ 0 Salesforce sinks on weak guidance — here’s the biggest takeaway for the bulls https://financiallevel.com/2025/03/01/salesforce-sinks-on-weak-guidance-heres-the-biggest-takeaway-for-the-bulls/ https://financiallevel.com/2025/03/01/salesforce-sinks-on-weak-guidance-heres-the-biggest-takeaway-for-the-bulls/#respond Sat, 01 Mar 2025 04:06:25 +0000 https://financiallevel.com/2025/03/01/salesforce-sinks-on-weak-guidance-heres-the-biggest-takeaway-for-the-bulls/ Salesforce shares fell in extended trading Wednesday on mixed quarterly results and weak guidance. However, the enterprise software giant’s AI business is picking up steam, which should propel the stock higher over time. Sales in the fiscal 2025 fourth quarter rose 8% on an annual basis to $9.99 billion, a touch shy of the $10.04

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Marc Benioff, chief executive officer of Salesforce, speaks during the World Economic Forum in Davos, Switzerland, Jan. 18, 2024.
Halil Sagirkaya | Anadolu | Getty Images

Salesforce shares fell in extended trading Wednesday on mixed quarterly results and weak guidance. However, the enterprise software giant’s AI business is picking up steam, which should propel the stock higher over time.

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]]> https://financiallevel.com/2025/03/01/salesforce-sinks-on-weak-guidance-heres-the-biggest-takeaway-for-the-bulls/feed/ 0 Nvidia’s auto segment revenue surges to record high on demand for driver-assist tech https://financiallevel.com/2025/02/28/nvidias-auto-segment-revenue-surges-to-record-high-on-demand-for-driver-assist-tech/ https://financiallevel.com/2025/02/28/nvidias-auto-segment-revenue-surges-to-record-high-on-demand-for-driver-assist-tech/#respond Fri, 28 Feb 2025 20:06:02 +0000 https://financiallevel.com/2025/02/28/nvidias-auto-segment-revenue-surges-to-record-high-on-demand-for-driver-assist-tech/ Signage at the Nvidia Corp. offices in Taipei, Taiwan, on Tuesday, Jan. 28, 2025.  Photographer: An Rong Xu/Bloomberg via Getty Images Bloomberg | Bloomberg | Getty Images U.S. chipmaker Nvidia‘s auto segment revenue more than doubled in the latest quarter to a record high on strong demand for driver-assist software. While the company’s biggest revenue

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Signage at the Nvidia Corp. offices in Taipei, Taiwan, on Tuesday, Jan. 28, 2025.  Photographer: An Rong Xu/Bloomberg via Getty Images
Bloomberg | Bloomberg | Getty Images

U.S. chipmaker Nvidia‘s auto segment revenue more than doubled in the latest quarter to a record high on strong demand for driver-assist software.

While the company’s biggest revenue stream by far is chip systems that power artificial intelligence, Nvidia has predicted its products that power driver-assist technology could become its next “billion-dollar” business.

Revenue of Nvidia’s automotive and robotics segment rose 103% year on year to $570 million in the fourth quarter of the 2025 fiscal year. That brought the segment’s revenue for the fiscal year to $1.69 billion, above $1 billion for a second-straight year.

The latest increase in revenue was due to to sales of Nvidia’s “self-driving platforms,” according to the company’s CFO.

“This growth highlights Nvidia’s increasing exposure to powering ADAS, autonomous vehicles, and robotics through its DRIVE platform and related technologies,” Brady Wang, semiconductor analyst at Counterpoint Research, said in an email.

CEO Jensen Huang said in Nvidia’s earnings call the company expects that “every single one” of the 1 billion cars on the roads today “will be robotic cars” that collect data which Nvidia-supported AI systems can help refine, according to a FactSet transcript.

Automotive and robotics is “getting ready to take off,” likely due to investments in autonomous vehicles such as Waymo and Tesla, Gene Munster, managing partner at Deepwater Asset Management, said in an email. Munster also estimated that around 15 companies are building humanoid robots, potentially increasing demand for Nvidia chips.

“The performance of that segment is an important story below the fold that’s not getting much attention because it’s small,” he added, “but they can be a much bigger part of revenue going forward.”

Autos and robotics unit currently accounts for 1.45% of Nvidia’s total revenue.

Counterpoint’s Wang expects this growth to continue with Nvidia’s “increasing adoption of L2+ and more advanced systems”.

Several Chinese electric car companies, including BYD, Nio and Zeekr, use Nvidia’s driver-assist chip systems.

“In addition to autonomous driving, I also anticipate that robotics and physical AI will experience a hype,” Wang added, “followed by real-world applications in the coming years, sustaining the long-term growth of this sector.”

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]]> https://financiallevel.com/2025/02/28/nvidias-auto-segment-revenue-surges-to-record-high-on-demand-for-driver-assist-tech/feed/ 0 WBD adds 6.4 million Max subscribers, forecasts 150 million subs by end of 2026 https://financiallevel.com/2025/02/28/wbd-adds-6-4-million-max-subscribers-forecasts-150-million-subs-by-end-of-2026/ https://financiallevel.com/2025/02/28/wbd-adds-6-4-million-max-subscribers-forecasts-150-million-subs-by-end-of-2026/#respond Fri, 28 Feb 2025 11:56:11 +0000 https://financiallevel.com/2025/02/28/wbd-adds-6-4-million-max-subscribers-forecasts-150-million-subs-by-end-of-2026/ In this article WBD Follow your favorite stocksCREATE FREE ACCOUNT A sign outside of the Warner Brothers Discovery Techwood Turner Broadcasting campus is seen on June 26, 2024 in Atlanta, Georgia. Kevin Dietsch | Getty Images Warner Bros. Discovery said Thursday it added 6.4 million global streaming subscribers in the fourth quarter for a total

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A sign outside of the Warner Brothers Discovery Techwood Turner Broadcasting campus is seen on June 26, 2024 in Atlanta, Georgia.
Kevin Dietsch | Getty Images

Warner Bros. Discovery said Thursday it added 6.4 million global streaming subscribers in the fourth quarter for a total of 116.9 million subscribers.

Fourth-quarter revenue for the streaming segment, which is anchored by flagship service Max, totaled $2.65 billion, up 5% from $2.53 billion in the same quarter last year. Adjusted earnings before interest, taxes, depreciation and amortization for the unit came in at $409 million, compared with an adjusted EBITDA loss of $55 million in the fourth quarter of 2023.

In a shareholder letter, the media and entertainment company forecast adjusted EBITDA of $1.3 billion for its streaming business for the year — roughly double the $677 million adjusted EBITDA it reported for 2024 — and said it has a “clear path” to hit 150 million global subscribers by the end of 2026. Max is set to launch on television service Sky in the United Kingdom and Ireland by the second quarter of 2026, and will debut in Germany and Italy in the first quarter of that year.

“In this generational media disruption, only the global streamers will survive and prosper, and Max is just that,” CEO David Zaslav said on the company’s earnings call Thursday.

WBD announced Wednesday that Max would keep its B/R Sports and CNN content available at no additional cost to subscribers in its standard and premium tiers. Initially WBD planned to charge an additional cost for sports.

However, it will pull both verticals from its basic, ad-supported tier beginning March 30.

On the earnings call, JB Perrette, CEO and president of global streaming and games, said the company would continue to experiment with its news and sports business models.

While sports have increased their presence on streaming services recently, with platforms like Netflix adding to their live sports portfolios, Zaslav said the company is more focused on maximizing its returns than acquiring more sports content.

Warner Bros. Discovery is losing U.S. distribution rights to National Basketball Association games starting next season. It still has a U.S. sports portfolio that includes the French Open, Major League Baseball, college football and the National Hockey League.

“We don’t need any more sports anywhere in the world in order to support our business,” Zaslav said, adding that he expects it will become more difficult to obtain sports rights with increasing prices and competition.

On the news front, Zaslav said Warner Bros. Discovery expected CNN to see more benefit from the 2024 presidential election that ultimately did not materialize. CNN, along with MSNBC, saw its ratings fall drastically after the election, while Fox News enjoyed strong ratings in that period.

Shares of WBD rose nearly 5% Thursday.

Here’s how Warner Bros. Discovery performed in the fourth quarter of 2024 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

  • Loss per share: 20 cents vs. earnings per share of 1 cent expected
  • Revenue: $10.03 billion vs. $10.19 billion expected

WBD’s overall fourth-quarter revenue fell 2% to $10.03 billion from $10.28 billion during the same quarter in 2023. Full-year 2024 revenue came in at $39.32 billion, down 5% from $41.32 billion in 2023.

Warner Bros. Discovery reported a net loss of $494 million for the fourth quarter of 2024, or a loss of 20 cents per share, compared with a net loss of $400 million, or a loss of 16 cents per share, during the fourth quarter of 2023.

TV networks revenue came in at $4.77 billion, compared with $5.04 billion in the year-earlier period. The company previously wrote down $9.1 billion for its networks business in its 2024 second-quarter earnings report. In its shareholder letter, Warner Bros. Discovery noted that it expects further declines in cable subscribers and that the advertising market for U.S. linear television is shrinking faster than expected.

For the studios business, fourth-quarter revenue totaled $3.66 billion, an increase of 15% from $3.17 billion in the fourth quarter of 2023.

“We are laser-focused on getting our studios back to a place of industry leadership,” Zaslav said.

Disclosure: MSNBC and CNBC are divisions of NBCUniversal.

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]]> https://financiallevel.com/2025/02/28/wbd-adds-6-4-million-max-subscribers-forecasts-150-million-subs-by-end-of-2026/feed/ 0 Dell forecasts $15 billion of AI server sales this year https://financiallevel.com/2025/02/28/dell-forecasts-15-billion-of-ai-server-sales-this-year/ https://financiallevel.com/2025/02/28/dell-forecasts-15-billion-of-ai-server-sales-this-year/#respond Fri, 28 Feb 2025 03:46:31 +0000 https://financiallevel.com/2025/02/28/dell-forecasts-15-billion-of-ai-server-sales-this-year/ In this article DELL Follow your favorite stocksCREATE FREE ACCOUNT Michael Dell, chairman and chief executive officer of Dell Inc., speaks during the Dell Technologies World conference in Las Vegas, Nevada, US, on Monday, May 20, 2024. Bridget Bennett | Bloomberg | Getty Images Dell reported fourth-quarter sales that fell short of analysts’ estimates but

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Michael Dell, chairman and chief executive officer of Dell Inc., speaks during the Dell Technologies World conference in Las Vegas, Nevada, US, on Monday, May 20, 2024.
Bridget Bennett | Bloomberg | Getty Images

Dell reported fourth-quarter sales that fell short of analysts’ estimates but earnings topped Wall Street expectations.

Here’s how the hardware company did versus LSEG consensus estimates:

  • Revenue: $23.9 billion, versus $24.55 billion estimated
  • EPS: $2.68, adjusted, versus $2.53 estimated.

Dell shares are down less than 5% so far in 2025, but the company’s stock has more than doubled in the last two years due to soaring demand for artificial intelligence systems, often based around Nvidia graphics processing chips. Dell sells Nvidia-based servers to Elon Musk’s xAI, for example, and said it had $4.1 billion in backlogged AI server orders at the end of January.

Dell said it sold about $10 billion of AI-optimized servers in its fiscal 2025, and expects to sell about $15 billion in AI system sales in the current year.

Current quarter revenue will be between $22.5 and $23.5 billion, Dell said, trailing the average estimate of $23.59 billion, according to LSEG. The company guided for adjusted earnings per share during the quarter of $1.65, versus $1.76 estimated by analysts.

Dell expects between $101 billion and $105 billion of revenue in its fiscal 2026, about inline with LSEG estimates of $103.17 billion. Earnings per share for the full year will be $9.30, the company said, topping estimates of of $9.23

Net income increased to $1.53 billion, or $2.15 per share, from $1.21 billion, or $1.66 per share, in the year-ago period.

Dell raised its dividend by 18% and announced $10 billion in share repurchase authorization.

Revenue rose 7% in the fourth quarter, driven by the company’s Infrastructure Solutions Group, its server division, which saw sales rise 22% to $11.35 billion. That was under a StreetAccount estimate of $11.7 billion in sales.

Dell’s client solutions group, its biggest business, saw sales rise 5% to $11.88 billion, due to a sluggish laptop market. StreetAccount was expecting $11.98 billion in revenue.

Dell revealed on Thursday that it had discovered that some of its suppliers had given it credits that were not recorded or that were recorded at the wrong time. The impact was “not material,” Dell said, adding that it had restated prior financial statements in 2024 and 2025.

“The company initiated an investigation that indicated that the credits resulted from the actions of certain employees that support a limited number of suppliers, impacting the Client Solutions Group segment and overstating cost of goods sold by approximately $200 million in fiscal 2024 and $148 million in fiscal 2025 for the nine months ended November 1, 2024,” Dell said in its press release.

WATCH: Dell nears deal to sell $5 billion in AI servers to xAI

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]]> https://financiallevel.com/2025/02/28/dell-forecasts-15-billion-of-ai-server-sales-this-year/feed/ 0 Snowflake surges 7% on earnings beat as company expands AI push https://financiallevel.com/2025/02/27/snowflake-surges-7-on-earnings-beat-as-company-expands-ai-push/ https://financiallevel.com/2025/02/27/snowflake-surges-7-on-earnings-beat-as-company-expands-ai-push/#respond Thu, 27 Feb 2025 19:46:00 +0000 https://financiallevel.com/2025/02/27/snowflake-surges-7-on-earnings-beat-as-company-expands-ai-push/ In this article SNOW Follow your favorite stocksCREATE FREE ACCOUNT Jakub Porzycki | Nurphoto | Getty Images Snowflake shares popped more than 7% Thursday after the data analytics software company posted stronger-than-expected fourth-quarter results. The company reported adjusted earnings of 30 cents per share on $987 million in revenue, surpassing the 17 cents per share

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Snowflake shares popped more than 7% Thursday after the data analytics software company posted stronger-than-expected fourth-quarter results.

The company reported adjusted earnings of 30 cents per share on $987 million in revenue, surpassing the 17 cents per share and $956 million in sales expected by analysts polled by LSEG. That reflected 27% year-over-year revenue growth.

CEO Sridhar Ramaswamy called Snowflake the “essential enterprise data and AI company on the planet right now” during an interview with CNBC’s Jon Fortt on Wednesday.

Like its peers, Snowflake has pushed to offer new artificial intelligence tools to its customers as the race for advanced large language models and AI capabilities accelerates. It announced an expanded partnership with Microsoft Azure to offer access to OpenAI models on Wednesday.

Last quarter, the company announced a multiyear partnership with Anthropic and said it had agreed to buy startup Datavolo for an undisclosed sum.

‘”It’s a step up,” Ramaswamy said. “Both these companies really represent the cutting edge of what AI can do and having those accessible … all on top of the data that sits on Snowflake, I think uniquely distinguishes us.”

Product revenue also topped analyst estimates, growing 28% to $943 million. That came in ahead of the roughly $914 million LSEG estimate. The company also said it anticipates $4.28 billion in product revenue for the year, ahead of a $4.21 billion estimate.

Guidance for the current quarter, however, came up short of estimates. Snowflake said it expects product revenues to range between $955 million to $961 million, versus a StreetAccount estimate of $961 million.

Goldman Sachs analyst Kash Rangan said the results further boosted the firm’s confidence in the revenue add from new products in the second half of the fiscal year for Snowflake and he views the company as set to become a long-term generative AI winner.

“By expanding the reach and accessibility of its core data platform to more avenues such as [large language models], Hyperscalers, etc., Snowflake can become core to the development of AI applications, evidenced by 4,000+ accounts using Snowflake AI/ML and Cortex AI’s early momentum,” he wrote.

Snowflake said it had 11,159 customers during the period, up from 10,618. Analysts polled by FactSet had expected 10,987. The company also said that Chief Financial Officer Michael Scarpelli will retire, but remain in the role until a successor is found.

— CNBC’s Jordan Novet contributed reporting

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]]> https://financiallevel.com/2025/02/27/snowflake-surges-7-on-earnings-beat-as-company-expands-ai-push/feed/ 0 Shares of British aerospace giant Rolls-Royce hit all-time high on upbeat outlook, profit beat https://financiallevel.com/2025/02/27/shares-of-british-aerospace-giant-rolls-royce-hit-all-time-high-on-upbeat-outlook-profit-beat/ https://financiallevel.com/2025/02/27/shares-of-british-aerospace-giant-rolls-royce-hit-all-time-high-on-upbeat-outlook-profit-beat/#respond Thu, 27 Feb 2025 11:36:01 +0000 https://financiallevel.com/2025/02/27/shares-of-british-aerospace-giant-rolls-royce-hit-all-time-high-on-upbeat-outlook-profit-beat/ A model of an UltraFan on the Rolls-Royce Holdings Plc stand on day two of the Farnborough International Airshow in Farnborough, UK, on Tuesday, July 23, 2024. Bloomberg | Bloomberg | Getty Images British aerospace group Rolls-Royce on Thursday posted stronger-than-expected full-year earnings, upgraded its mid-term guidance and declared a £1 billion ($1.27 billion) share

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A model of an UltraFan on the Rolls-Royce Holdings Plc stand on day two of the Farnborough International Airshow in Farnborough, UK, on Tuesday, July 23, 2024.
Bloomberg | Bloomberg | Getty Images

British aerospace group Rolls-Royce on Thursday posted stronger-than-expected full-year earnings, upgraded its mid-term guidance and declared a £1 billion ($1.27 billion) share buyback.

Rolls-Royce, which manufactures jet engines for commercial aircraft along with power systems for ships and submarines, reported 2024 operating profit of £2.46 billion, beating analyst expectations and reflecting an increase of 57% from the year prior.

The company said robust delivery in 2023 and 2024 enabled it to meet its mid-term targets this year, two years ahead of schedule, before adding that it now expects operating profit to increase to between £3.6 billion and £3.9 billion over the mid-term.

Rolls-Royce also announced a dividend of 6 pence per share, reinstating the payout after a five-year break, and said a £1 billion share buyback would be completed over the course of 2025.

Analysts at Citi described the full-year results as “very strong.”

Shares of Rolls-Royce surged as much as 19.4% on the news, notching a fresh all-time high and hitting the top of the pan-European Stoxx 600 index.

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“We are two years into a multi-year transformation journey [and] we’ve made significant progress,” Helen McCabe, CFO of Rolls-Royce, told CNBC’s “Squawk Box Europe” on Thursday.

“It’s a culmination of us following through on our promises,” McCabe said, citing the engine-maker’s expanding earnings potential and improving balance sheet.

Supply chain disruption

Rolls-Royce said its 2024 profits were boosted by robust performance in business aviation and by improved contract terms.

The earnings reflect the firm’s transformation progress since former BP executive Tufan Erginbilgic took the reins as CEO in January 2023. At the time, Erginbilgic described the company as a “burning platform” that needed to change the way it operated to survive.

Rolls-Royce’s McCabe said Thursday that the company welcomed the U.K. government’s recent pledge to increase defense spending to 2.5% of gross domestic product (GDP) from April 2027, describing the commitment as “great for U.K. security.”

Looking ahead, McCabe said the two biggest risks for the firm were safety and supply chains.

“There are two things that we continually worry about at the minute. Safety, it is our job to always have safety at the forefront of our mind,” McCabe said.

“And then, as you mentioned earlier, supply chains. It is causing so much disruption across the whole industry, and it is quite volatile,” she added.

The post Shares of British aerospace giant Rolls-Royce hit all-time high on upbeat outlook, profit beat appeared first on Financial Level.

]]> https://financiallevel.com/2025/02/27/shares-of-british-aerospace-giant-rolls-royce-hit-all-time-high-on-upbeat-outlook-profit-beat/feed/ 0 Nvidia’s beat and raise eases investors’ concerns about 4 things nagging the stock https://financiallevel.com/2025/02/27/nvidias-beat-and-raise-eases-investors-concerns-about-4-things-nagging-the-stock/ https://financiallevel.com/2025/02/27/nvidias-beat-and-raise-eases-investors-concerns-about-4-things-nagging-the-stock/#respond Thu, 27 Feb 2025 03:26:17 +0000 https://financiallevel.com/2025/02/27/nvidias-beat-and-raise-eases-investors-concerns-about-4-things-nagging-the-stock/ Nvidia on Wednesday evening delivered a better-than-expected fiscal 2025 fourth quarter driven by a $2 billion revenue beat on data center sales. Forward guidance also exceeded estimates. Despite the enormous anticipation of the results, shares dropped 1.5% in after-hours trading. But given the volatile nature of the stock, a bigger move — in either direction

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Nvidia CEO Jensen Huang gives a keynote address at CES 2025, an annual consumer electronics trade show, in Las Vegas, Nevada, U.S. Jan. 6, 2025. 
Steve Marcus | Reuters

Nvidia on Wednesday evening delivered a better-than-expected fiscal 2025 fourth quarter driven by a $2 billion revenue beat on data center sales. Forward guidance also exceeded estimates. Despite the enormous anticipation of the results, shares dropped 1.5% in after-hours trading. But given the volatile nature of the stock, a bigger move — in either direction — could materialize come Thursday’s opening bell.

The post Nvidia’s beat and raise eases investors’ concerns about 4 things nagging the stock appeared first on Financial Level.

]]> https://financiallevel.com/2025/02/27/nvidias-beat-and-raise-eases-investors-concerns-about-4-things-nagging-the-stock/feed/ 0 We’re lifting our price target on off-price retailer TJX after another strong quarter https://financiallevel.com/2025/02/26/were-lifting-our-price-target-on-off-price-retailer-tjx-after-another-strong-quarter/ https://financiallevel.com/2025/02/26/were-lifting-our-price-target-on-off-price-retailer-tjx-after-another-strong-quarter/#respond Wed, 26 Feb 2025 19:25:58 +0000 https://financiallevel.com/2025/02/26/were-lifting-our-price-target-on-off-price-retailer-tjx-after-another-strong-quarter/ Shoppers never know exactly what they will find at a T.J. Maxx, Marshalls, or HomeGoods. Investors, on the other hand, are finding earnings from their parent company rather predictable. TJX Companies on Wednesday delivered a better-than-expected quarter but light outlook. The market was hardly concerned, sending shares up 3%, because TJX consistently under-promises and over-delivers.

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A Marshalls and HomeGoods store entrance in Miami, Florida. 
Jeff Greenberg | Universal Images Group | Getty Images

Shoppers never know exactly what they will find at a T.J. Maxx, Marshalls, or HomeGoods. Investors, on the other hand, are finding earnings from their parent company rather predictable.

The post We’re lifting our price target on off-price retailer TJX after another strong quarter appeared first on Financial Level.

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